A new set of standard and Excel furlough report designs are available to handle the changes introduced by HMRC to the CJRS from July onwards, these reports are in addition to those originally released for use from March 2020.
To help ERs with working out the required information to submit a claim under the CJRS, two new reports have been designed to assist you and fall into 2 main categories:
- relevant CJRS (furlough) information and
- a claim file for furloughed Employees (EEs).
This method means you will not have to perform a full upgrade your Opera 3 software. All you will need to do is follow a few simple steps to access the new reports.
Three main elements of information are required to calculate out the total claim value.
- Furloughed wage (lesser of 80% of normal wage or the relevant limit)
- ERs NI on the furloughed wage (normally 13.8% but can vary depending on NI code) where appropriate.
- Minimum automatic enrolment ER pension contributions on the furloughed wage (up to 3% – between AE LEL & UEL) where appropriate.
The new reports must be used for CJRS claims for the months of July, August, September and October.
Note: CJRS ends after October.
What are the key legislative changes HMRC have introduced?
- For July, EEs can be flexibly furloughed (i.e. an EE can return to work on a part-time basis, with furlough being payable for their non-working hours).
- In July the ER can still claim the furlough pay of 80% (up to max. of £2,500 per month) and claim the associated ERs NICs and minimum pension contributions.
- For August onwards, whilst the ER can still claim the furlough pay of 80% (up to max. of £2,500 per month) the ER can no longer claim the associated ERs NICs nor minimum pension contributions i.e. the ER has to start paying those themselves.
- For September onwards the ER must start contributing towards the cost of the wages for furloughed EEs.
- In September, whilst the EE themselves must still be paid 80% of their usual pay, HMRC will only fund 70% of that pay; the ER must pay (fund) the remaining 10%, as well as the ER having to pay all the associated ERs NICs and minimum pension contributions for all of the furlough pay (i.e. not just on the 10% portion the ER now has to pay).
- For September, the maximum furlough pay reduces from £2,500 per month to £2,187.50.
- In October, whilst the EE themselves must still be paid 80% of their usual pay, HMRC will only fund 60% of that pay; the ER must pay (fund) the remaining 20%, as well as the ER having to pay all the associated ERs NICs and minimum pension contributions too for all of the furlough pay.
- For October, the maximum furlough pay reduces from £2,187.50 per month to £1,875.
The new reports will be deployed in the same way as was applied for the original furlough reports released back in April, i.e.: an automated copy utility for Opera 3 VFP/SQL, with a manual deployment process then required for Opera 3 SE. The deployment steps are covered in the How do you deploy the reports section of this document.
After the new reports have been deployed (and assuming the original ‘April’ reports have previously been deployed) the Opera 3 system will have two different sets of furlough reports:
- the original set for use up to (and including) June 2020.
- the new set for use from July 2020 onwards.
Important: the new reports must only be used for claims in July onwards; any remaining claims for June must be performed using the original reports.
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